Exhibit 10.7
    

    
      [Redhook Ale Brewery Letterhead]

June 30, 2008



    

    
      Sebastian Pastore
Widmer Brothers Brewing Company
929 North
      Russell Street
Portland, OR 97227


Dear Sebastian:
    

    
      As you know, Widmer Brothers Brewing Company ("Widmer") has agreed to
      merge into Redhook Ale Brewery, Incorporated (the “Merger”), and on the
      closing date of the Merger (the "Effective Date"), the surviving
      corporation will be named Craft Brewers Alliance, Inc. (the "Company"). 
      The purpose of this letter is to confirm our understanding about your
      employment as the Vice President of Brewing Operations and Technology of
      the Company.  As of the Effective Date, this letter will supersede your
      existing Employment Agreement with Widmer.
    

    
      You will be an “at-will” employee.  Our mutual agreement regarding your
      salary, severance and other benefits and obligations, beginning as of
      the Effective Date, is set forth below.
    

    
      Compensation and Benefits
    

    
      Your annual base salary will initially be $170,000 (before standard tax
      withholdings and other payroll deductions).  Your base salary level will
      be reviewed annually for adjustment beginning January 1, 2009 by the
      Compensation Committee and its recommendation will be submitted to the
      Company's Board of Directors for approval.  In addition, you are
      entitled to participate in all of the Company’s employee benefit
      programs for which you are eligible, including a long-term incentive
      plan for executive officers to be developed by the Compensation
      Committee of the Board.  During the third quarter of 2008, an
      independent study will be conducted by an outside research firm to
      evaluate and propose a structure for your total compensation, including
      components of base salary, short term bonus and a long term incentive
      plan.  This research will be presented to the Compensation Committee
      with recommendations from the Co-CEO’s for the Committee’s and/or
      Board’s consideration.
    

    
      You will be eligible for a yearly bonus, such bonus to be approved by
      the Board on recommendation of the Compensation Committee.  We
      anticipate that a portion of your bonus will be discretionary, and a
      portion will be paid upon achieving certain targets approved by the
      Compensation Committee or the Board.  .For the period from January 1,
      2008, to December 31, 2008, your target bonus will be $34,000, less the
      total amount, if any, that, prior to the Effective Date, is (a) paid to
      you as a bonus or (b) approved for payment to you as a bonus by the
      Widmer Compensation Committee.  No other bonus will be payable under
      your existing Employment Agreement with respect to services during 2008.
    

    
      
        

        

      

      
        

        

        
          


        

      

      
        

        

      

    

    
      Severance
    

    
      In the event that your employment with the Company is terminated by the
      Company for any reason other than “for cause”, the Company will continue
      to pay you your then base salary for a period of months (the “Severance
      Period”) equal to the lesser of (a) the number of full years of service
      you have accrued with the Company, including time spent at Widmer and
      Craft Brands Alliance LLC, or (b) 24 months. In addition, the Company
      will promptly make a cash payment to you in an amount equal to 100% of
      your unused Paid Time Off ("PTO") hours accrued through the date of
      termination in accordance with the provisions of the Company's PTO Plan
      then in effect; provided, however, that during the term of
      your employment with the Company, if you do not use all available PTO by
      the end of a fiscal year, you may carry over your unused time to the
      following fiscal year until you reach a maximum of two times your
      accrual hours per year. The Company will also continue to provide you,
      for the Severance Period or 18 months, whichever is less, the same
      health benefits as were being provided to you at the time of
      termination, provided, however, that such benefits shall terminate in
      the event you find new employment with comparable health
      coverage.  Additionally, if, during the Severance Period, you become
      employed or associated with a brewing or other company that the Company
      determines, in its reasonable discretion, is a competitor of the Company
      or Anheuser-Busch, Incorporated, your salary continuation payments will
      terminate as of the effective date of such employment or
      association.  For purposes of this letter, “for cause” means that you
      have engaged in conduct which has substantially and adversely impaired
      the interests of the Company, or would be likely to do so if you were to
      remain employed by the Company; you have engaged in fraud, dishonesty or
      self-dealing relating to or arising out of your employment with the
      Company; you have violated any criminal law relating to your employment
      or to the Company; you have engaged in conduct which constitutes a
      material violation of a significant Company policy or the Company's Code
      of Ethics, including, without limitation, violation of policies relating
      to discrimination, harassment, use of drugs and alcohol and workplace
      violence; or you have repeatedly refused to obey lawful directions of
      the Company’s Board of Directors.
    

    
      If there is a substantial adverse change in the nature or status of your
      title, position, duties, or reporting responsibilities as an executive
      of the Company, you have the option to resign and receive the same
      severance and health benefits as if you were terminated not "for cause"
      calculated at the base salary in effect prior to such adverse change in
      your position with the Company.  This option will expire, if not
      previously exercised, at the close of business on the 45th
      calendar day following (a) your receipt of written notice from the
      Company of the substantial adverse change in your title, position,
      duties, or reporting responsibilities or (b) your delivery of written
      notice to the Company that you believe a substantial change in your
      title, position, duties, or reporting responsibilities has occurred.
    

    
      
        

        

      

      
        

        

        
          


        

      

      
        

        

      

    

    
      The Company may require you to execute an appropriate general release of
      claims that you may have relating to your employment at the Company and
      termination of your employment as a condition to your receipt of any
      severance payments or other benefits other than those required by law or
      provided to employees generally.
    

    
      Code of Conduct
    

    
      By your signature below, you agree to comply with the Company’s Code of
      Conduct and Ethics as in effect from time to time, and to be subject to
      the Company’s policies and procedures in effect from time to time for
      senior executives of the Company.
    

    
      We appreciate your continued efforts on behalf of the Company, and look
      forward to having you as a member of our team for years to come.
    

    
      Sincerely,
    

    
      Paul Shipman
Chief Executive Officer

    

    
      Acknowledged and Agreed:

__/s/ Sebastian
      Pastore___________________
Sebastian Pastore


Date: June
      30, 2008